Return on shareholders funds 23.7%
Dividend per share 23.8p
Analysis of shareholdings
Number of shares held by shareholders % of shareholders % of total number
1-500 34.57 1.10
501-1,000 23.95 2.44
1,001-10,000 39.02 13.50
10,001-100,000 1.98 6.73
100,001-1,000,000 0.37 16.83
Over 1 million 0.11 59040
The Boots Company’s position on Economic and Monetary Unit
Economic and Monetary Union and the introduction of the euro will have an impact on The Boots Company, whether or not the UK decides to join EMU. The Boots Company has businesses in nine of the ‘first wave’ countries and also need to plan for the impact of the UK’s possible entry. Estimates of the costs to retailers range from 1% of a year’s turnover to 3%, depending on the assumptions that are made.
The organisation anticipates that costs of approximately £5 million will be incurred between 1998 and 2002 to support the introduction of the euro in these first wave countries.
Objectives of Human Resources Planning
The organisation can control staff costs and number employed far more effectively.
Employers can build up a skilled profile of each of their employee.
It creates a profile of staff, which is necessary for the operation of an equal opportunities policy.
Encourages employers to develop clear links between their business and human resources plan.
The advantages of Human Resources planning
Boots has progressive and competitive policies on performance and reward, designed to recruit, motivate, develop and retail high quality people.
Employees do challenging work which motivates and stimulates them this lead to a better atmosphere in the work environment.
Overtime is done only when is vitally necessary.
The company is committed to an open and honest management system, which enables all employees to be well informed and to understand issues affecting the business.
The Human Resources planning process
One of the major aspects of human resources planning is reviewing continuously the information about the organisation. It is necessary to update the plan taking into account the changing circumstances.
The Boots company offers pay and working conditions which are both highly competitive and above average. They are committed to an open and honest management system which enables the employees to be well informed and to understand issues affecting the business.
The stages in the HRM
Supply Side Demand Side
Analysis of current Analysis of future plans/
human resources strategies of the
within the organisation organisation and the effect
on human resources
Sources of information Sources of information
Personnel records, numbers Corporate business plan,
employed, grade/level, age, implementation plans,
length of service, qualifications/ estimates of future activity
competences, appraisal levels
information, continuing
professional development
record
Plan of future availability Projection of human resource
of staff levels required
MATCHING DEMAND AND SUPPLY
Examination of how these two
projection match up
Forecast of human resources
surplus/deficit
Examination of alternative policies to meet
identified human resource needs
Recruitment, training/professional
development of current staff,
transfer, termination
Identification of the HRM plan, selection of the
best policy and an indication of how it
should be implemented
Supply Side
Boots has to plan carefully to ensure they have the right number of suitable employee for their needs. To do this they need a good understanding of the labour market in the area where they operate. They need to consider the effect of the following labour market factors for human resources planning.
Local employment trends
Local skills shortages
Competitions for employees
Availability of labour
For example:
The London Borough of Newham is one of the richest areas in the UK in terms of its mix of cultures and people. Newham is estimated to have a population of 232,443 and is one of the fastest growing areas of East London with expanding housing developments and increasing birth rates.
The adult population is 162,457.
Labour Force by Age and Gender (000s)
Year 1999 2000
London Female total Male total 3,428 1,507 1,921 3,370 1,478 1,892
Inner London Female total Male total 1,244 549 695 1,229 533 695
Outer London Female total Male total 2,184 958 1,224 2,141 944 1,197
Great Britain Female total Male total 27,577 12,082 15,495 27,556 12,093 15,464
Performance Information
Number of learning opportunities
Qualifications Non Qualifications
Office/ Business 450 480
Languages/ Humanities 80
GCSE 120
GCE A& AS 70
Basic Education 380
Esol 1000
Other Vocational/ Academic 500 50
Totals 1140 1610
Training opportunities
Starts (year)
Training for work& employment action 1998-1999 1999-2000
London Region 40,300 45,800
Considering this figures The Boots Company has to think carefully if they are going to recruit from this area. Human Resources department must analyse data and factors before they make decisions. Newham Council has adopted a vision for the future that will make Newham a place where everyone wants to live and work.
To strengthen Newham’s economy and bring in the jobs in the sectors that are growing, people in Newham have to be skilled.
The Boots Company must take into account a range of factors when making decisions about their internal staff. The factors include:
Labour turnover; should be analysed in order to help Boots forecast its future losses and to identify the reasons people leave the organisation.
Sickness and accident rates
Age skills and training
Demand Side
Boots is just like any other company the demand for labour will depend on the plans for the future. Labour is bought like other resources that the organisation might use. An individual sell his/her time, knowledge, skills and expertise to the organisation that employees him/her.
The more an organisation is prepared to pay the more time, skill, knowledge and expertise is asked to do. The potential employee that the organisation might recruit is the external labour market and is made up of potentially employees, locally, regionally or nationally, who have the skills and experiences required at a particular time.
The internal and eternal markets are linked in the sense that when it is decided that labour is needed, then management can look outside or inside the organisation.
Techniques for forecasting labour turnover
It is possible to measure the rate at which people are leaving the organisation by two methods:
employee wastage rate
Wastage rate = (No of staff leaving ÷Average No of staff employed ) x 100
in time period in time period
labour stability rate
Stability index = (No of staff leaving ÷ No employed 1 year ago ) x 100
with more than
1 year service
The national labour market
Changes in the age distribution of the UK population will affect the human resources planning of most organisations. The UK has an ageing population with fewer schools leavers and young workers available for employment.
This means that businesses may need to look to other sectors of the population to meet their human resources requirements.
Competition for labour
Where demand for people with specific skills is high there will be competition between employers to attract people with these skills offering attractive work packages in order to attract the best recruits always from rivals.
The objectives of the Boots Company
Their goal is to become the global leader in Health and Beauty by gathering knowledge and experience to offer excellent products and services, through a wide variety of channels to consumers around the world.
Pharmacy remains the cornerstone of Boots company in the UK. Now being ‘Chemist to the Nation’ the company is laying the foundation of a future growing range of health and beauty products and develop into related markets.
‘Looking good’ is an important part of ‘feeling good’. Health and Beauty are natural companions and together they constitute Boots established market territory.
Health and Beauty stores are introducing Boots brands like No7 and Natural Collection to consumers in Thailand and Japan. This year the first store opens in Taiwan. Underpinning all of this, is company’s objective to maximise the value of the company for the benefit of its shareholders.
While vigorously pursuing commercial interests at all the times the organisation seeks to enhance the reputation as well managed, ethical and socially responsible company.
The company looks for various qualities in potential Boots employees. In addition to academic ability, they look for people with extra-curricular abilities such as interpersonal ability and team-making skills.
The company is committed to an open and honest management system, which enables all employees to be well informed and to understand issues affecting the business. Progressive and competitive policies on performance and reward are designed to recruit, motivate, develop and retail high quality people.
The company is committed to conduct all its operations with proper regard for the environment, recognising that good environmental practice is also good business practice four key principles:
reducing adverse environmental arising from the company’s activities
ensuring efficient use of materials and energy
encouraging re-use and re-cycling
incorporating the principle of sustainable
Who are the major competitors?
Boots The Chemists (BTC):
Main competitors: M&S, Superdrug, Tecso,
Exemplar competitors: Wal-Mart, The Gap.
Boots Opticians (BOL):
The main competitors for BOL include other large multiple optical retail chains: Vision express, Dolland & Aitchison, Specsavers and Optical Express.
Halfords:
The main competitors for car parts and tools are the Finelist Group and indipendent retailers. Other competitors on accessories are national retailers such as Argos.
The Boots Company’s main board
Environmental Policy
The Boots Company is committed to conduct all its operations with proper regard for the environment, recognising that good environmental practice is also good business practice.
Managers in each of the businesses are responsible for environmental matters specific to that particular business, while a group environmental oversees the whole of the company’s activities and promotes continual progress function.
Task 2 Recruitment and Selection
Introduction
Recruitment is the discovering of potential people for current or possible future jobs.
Businesses recruit staff for a variety of reasons. This include:
growth of the business
reconstruction of the business
changing the job roles within the business
filling the vacancies created by resignation, retirement or dismissal
internal promotion
Recruitment process can be costly in terms of resources devoted to the process and costs associated with recruiting poor performance staff. It is important to select people accurately for interview and to be very clear about the requirements of the job and about the kind of person they are looking for.
In order to achieve this through:
preparing job description and person specification
carefully planning how and when to advertise
identifying the strengths and weaknesses of job applications, curriculum vitae and letters of application
shortlisting candidates
It is important to be able to understand the legal implications for recruitment of the following legislations:
Equal Pay Act 1970
Sex Discrimination Act 1975
Race Relations Act 1976
Disability Discrimination Act 1995
Career Opportunities
Boots is a learning organisation; they encourage people to strive to improve their skills and develop throughout their careers. So whatever is your experience Boots will exceed everyone expectations.
Graduate opportunities
Boots Graduate Development Programme offers the training and development with a growing international business. They have opportunities in Marketing, Retail Management, Logistics, IT, Finance, Science and Technology, Personnel and Telecommunications.
MBA opportunities
For high calibre MBA students Boots offers a limited number of opportunities to join one of the business development teams working on strategic issues facing the organisation.
Optometrist Opportunities
Boots Opticians is one of the most successful optometry chains in the UK. It offers a choice of a professional routes for Optometrists, including those with experience, who are seeking to broaden their careers.
Pharmacists Opportunities
Boots The Chemist is the UK’s largest pharmacy chain, employing over 3500 pharmacists and providing pre-registration training to a third of all graduates from schools of pharmacy.
Recruitment Process
The Boots Company believes that staying ahead means recruiting and developing the best people who will work with leading technology partners, helping them to become the leading company in health & beauty products.
Before I go into detail in how Boots recruit their employees I will give a detail account of the background into the section process. From Boots point of view, the purpose of recruiting is to buy in and retain the best available employees to meet the organisation needs.
Hence the first requirement is to define and set out what is involved in particular jobs. In order to this they must advertise the position in the right way.
We are looking for talented and committed people to help us develop and deliver total solutions for customers.
The Boots company is a very a large business. As I mentioned earlier is made up from several other business in different areas of industry. The Boots Company offers recruitment programmes for general entrance, and schemes focused on school leavers and graduates.
The company looks for a various qualities in potential Boots employees. In addition to academic ability, they look for people with extra curricular abilities such as interpersonal ability and team making skills.
For example:
Boots Optician has expanded rapidly in recent years and now employs 4,400 people in 298 stores. They provide a full examination and dispensing service, and carry around 30,000 eye examination a week.
They have grown to the present size through an aggressive programme of opening new stores.
Boots The Chemist is the UK’s leading retailer of health and beauty products with over 63,000 employees and over 1,400 stores ranging from small community pharmacies to city centre department stores.
Popular sources for recruitment include:
internal ‘customers’ search
advertisements
employee referrals
employment agencies
temporary employment agencies
schools, colleges and universities
Professional organisations
The selection Process
The recruitment process in Boots varies depending on the type and level of job you are applying for, and the business unit to which you are applying. The example of one such process given below - the Graduate Recruitment Process - gives an idea of some of the possible stages.
In addition to the requirements of the individual positions, the graduate scheme also requires applicants to fulfil three criteria:
Leading the thinking
See the big picture no matter how complex; offer and stimulate new ideas and turn complex issues into clear strategies.
When have you looked for and found solutions beyond the obvious?
How radical have you been?
How do you mange ambiguity?
How logical are you in your approach?
Leading the pace
Understand and focus on the important, drive to deliver better performance and be decisive in a crises.
Can you prioritise focusing on the important issues and dispensing with others?
Do you regularly achieve standards that you set and which are beyond those expected by others?
When do other rely upon you to make things happen?
Leading the team
Act as a catalyst driving for results and restlessly seeking to win.
- Do people enjoy working with you, do you create a buzz?
- How do you influence others even when the cause looks lost?
- Have you been able to get good results from difficult people? How did you manage it?
The selection process relies on application forms, interviews and selection centres. The company now operates competency based interviews. This is the process whereby applicants are asked to back up statements in interview with examples of personal experience, thus providing real evidence of their capabilities.
There are a number of laws that Boots has to comply with in relation to recruitment and selection.
The Race Relation Act 1976
The Sex Discrimination Act 1975
The Disability Discrimination Act 1995
The Equal pay Act 1970
Direct discrimination occurs when one employee or candidate for a job is treated better or more favourably than another because of his/her race or sex. Foe example, a British African applies for a job as a secretary and she goes for an interview at an accountant firm. She is told they don’t tolerate blacks and she would not fit in. The is a prime example of racial discrimination.
Indirect discrimination takes place when all employees seem to be treated exactly the same on the surface but, when looked at closer, members of a particular racial group or gender are found to be discriminated against.
Victimisation occurs when an employee is singled out for unfair treatment because he/she has attempted to exercise right under the RRA, SDA or Equal pay Act or has helped other to enforce their rights.
Racial Discrimination
The race relation Act 1976 states, a person discriminates against another if on racial grounds, he treats or would treat another person . Discrimination on racial grounds is , for the purpose of the RRA defined as discrimination on the basis of colour, race nationality, or ethnic or national origin.
Sex discrimination
The sex discrimination Act states it is unlawful to treat someone else less favourably on the basis of his/ her sex. A person discriminates against a woman if, on the grounds of her sex, he treats her less favourably than he treats a man. This applies equally to men and woman.
The equal pay Act 1970
The objective of the EPA was fundamentally to ensure that woman receive the same pay as men for the same or broadly similar work. If a woman wants to claim for pay discrimination, she must ensure that whatever man she compares herself to is in the same employment .
Disability Discrimination
The disability Discrimination Act 1995 protects employees who are classified as disabled. Anyone with a physical or mental impairment that has long term effects upon his or her ability to carry out everyday activities is termed disabled
Equal Opportunities in The Boots Company
The Boots Company is committed to treating all members of staff and applicants for employment in the same way, regardless of gender, sexual orientation, race, ethnic origin, marital status, age, disability or religion.
This commitment include:
- The elimination of discrimination of any sort, including harassment.
- The promotion of equality of opportunity in employment.
- A continuing programme of action to make the policy fully effective.
- Employment policies that aim to ensure that people receive treatment that is fair, equitable and consistent with their skills and abilities.
- Regular reviews of practices in recruitment, selection, promotion and training to ensure they provide equality of opportunity.
- Monitoring the composition of the workforce, and its policies and procedures to ensure the Equal Opportunities Policy is being properly implemented. Staff and job applicants are expected to co-operate in this process.
The Boots Company believes that everyone benefits from a working environment where respect for the individual is encouraged, and if staff feels they have been treated in a way that is contrary to this policy the issue should be dealt with by a senior manager, or directly by Personnel.
The Boots Company will make every effort to secure a satisfactory resolution, either by informal means, or formally through the Grievance Procedure.
Equality in Employment for People with Disabilities
The policy of the Company is to treat all members of staff and applicants for employment in the same way, regardless of gender, sexual orientation, race, ethnic origin, marital status, age, disability or religion.
- The company is committed to an Equal Opportunity Policy. It recognises its social, moral and statutory duty to employ people with disabilities and will do that is practicable to meet this responsibility and therefore supports and implements the Department of Employment's symbol initiative and The Employers’ Forum on disability- Employers’ Agenda on disability.
- The company wishes to be a company that is recognised by the community as an organisation that provides good employment opportunities for the people with disabilities and they wish individuals who apply for employment to know that they will receive fair treatment and be considered solely on their ability to do the job. The Company’s practises are reviewed regularly to ensure they provide equality of opportunity, selection, promotion and training.
Task 3 Training and Development
What Is Training ?
Training includes all forms of planned and learning experiences and activities designed to make positive changes to the performance and other behaviour (including the acquisition of new knowledge, skills, benefits, beliefs, values and attitudes). Learning is generally defined as a 'relatively permanant change in behaviour that occurs as a result of practice or experience'.
What Is Development ?
Development approaches the individual and his or hers motivation from a different angle of training. where as training is normally concern’s with enabling an individual to contribute to meeting the objectives of the organisation better. Personal Development enables you to develop yourself the best way to suit the individual needs. If you help your new recruits to develop themselves, they will be able to incline and be able to contribute better by helping the organisation meet its objectives.
The Development process should be for each employee to put together a Personal Development Plan(PDP) should include the following :
The individuals goals and aspirations.
An outline of the resources, methods and support required to achieve these goals.
An indication of a time period for achieving these goals
An indication of how these goals will be recognised by others.
Training and development is very essential for staff as this improves the staff performance and makes them suitable for the job they are doing and also to make them efficient members of the organisation.
If they get training and development the staff will then be :
Motivated employees and this will increase the job satisfaction, there by the would be reducing absenteeism and labour turnover.
They will reduce wastage and accident rates by creating a constant performance across the workplace
They will develop the skills of existing employees to cope with labour shortages.
Establish the most effective and efficient working methods in order to maximise productivity and remain competitive.
When giving training to employees it can be a substantially costly so you have to make sure that the training needs are correctly identified and the desired standard skills are established.
From my investigation I have found out that Boots existing training and development methods are very good they give you good opportunities and train you differently according to the post which you have applied for.
The Aim Of Training ?
The main reason why new recruits go training is because new staff need to be well trained. The main reason for this is that in Boots they have very high expectations and you have to meet all those needs of their organisation. Also you will be working with consumers who may need advice and information on medication and other departments of Boots so they have to make sure that they are fully trained.
Boots continues to invest substantially in training and development at all levels. The company has three Investor in People Awards, held by BTC, BCM and Boots Properties.
Over the past year the company has been identifying the behaviours and capabilities it needs to maximise value. To foster these capabilities, each business unit is evolving its own more participative and involving management style.
For example:
- Boots The Chemist (BTC) has substantially changed its approach to management in its stors to be more customer focused, inspire and harnes people’s energ and imagination and minimise bureaucratic distractions.
- Boots Contract Manufacturing (BCM) has introduced self-managed teams to make people feel more involved, valued and stretched and enable them to make a bigger contribution.
- The company continues to develop globally, with Boots Retail International, Boots Healthcare and BCM recruiting and developing staff with an international capability.
Types Of Training Which Are Available :
Training can take a number of forms including Induction Training. In Introduction Training boots has designed to familiarise new recruits with the organisation, its rules, facilities policies and key staff.
An induction training programme may include:
A general introduction and welcome to Boots
A summary of the policies of Boots
A specific rules and procedures including health and safety and showing them all the safety and important exists.
The terms and regulations of Boots
Also telling them their benefits and opportunities
job details and what they have to do.
An important element will be introducing the new recruits to the key staff.
showing them the facilities which are available within the organisation.
Mentoring Training
Mentoring can take a number of forms. this normally involves a important and experienced member of Boots supporting a new recruit through the initial stages after joining the organisation. Sometimes Mentoring takes place as part of management development and succession planning. This method of training in Boots can be very helpful for the new recruits to know the potential senior mangement roles.
Coaching Training
Coaching, Training is normally associated with the expert employees of Boots helping employees to develop specific skills through explanation, practice and encouragement. Coaching may also take the form of "sitting with Nellie" that is looking at someone with experience performs a particular job.
Apprenticeships
One of the great strengths of the British Industrial System was the existence of a range of apprenticeships schemes, many of which no longer exist. Traditionally, with the apprenticeships scheme an apprentice involves a trainee working for a period of time with a craftsman in order to learn a trade. The modern apprenticeships was introduced in 1990's. It provides young people with training in particular occupations coupled with essential key skills. They can take place
Internal Training
In-House Training can be often referred to as on-the job training and they provide employees with training and development resources within Boots.
In-House Training is used when the skills that an employee needs to acquire, or the nature of the task that needs to be performed, are too complex.
The trainee is placed in the actual working environment and uses the same materials and equipment that they will be required to use once the training has been completed.
On the job training is an advantage because the trainee is not being taught in the artificial environment of training a establishment and then expected to perform the same tasks and use the skills that have developed on different machinery and equipment in the real working environment.
External Training
External Training externally runs training schemes are normally used by smaller organisations, as they usually have too few employees requiring training. To justify expenditure on specialist training facilities and full time instructors.
Large organisations such as Boots may use external training courses for some off the job training but the size of their labour and their financial resources make it more viable to set up their own specialist veining facilities staffed by trained instructors.
External Training courses by definition, take place away from the real working environment. Externally run courses are often much longer then in house training programmes. But they can contribute to higher productivity and an increase in the quality of the output.
These could be the following courses
individual learning account
NVQs
Modern apprenticeships.
Telecommunications # # IEEE Membership, MBA
Business Management # # MBA
Boots Performance Appraisal
Boots now operates some form of performance appraisal system. The earlier schemes tended to be fairly subjective and referred employee attitudes. and personal qualities.
The modern systems tend to measure performance over the period the last review or to look at training and developments needs. Sometimes a good review will lead to a pay rise. Performance appraisals tend to be held annually but they can be more frequent.
Different Types Of Appraisals Techniques used include;
Self Appraisal
Upward Appraisal
Peer Appraisal
360 Degree Appraisal
Self Appraisal
Self Appraisal involves employees assessing themselves against a series of criteria. These results can be then be compared with the view of others. People are often surprised at how others may see them. This is a very important element because employees may find it hard to assess themselves so you have to make sure that you do it correctly.
Upward Appraisal
This is a growing trend now used by various companies. Here employees are rated by their sub-ordinates rather than by their superiors.
Sometimes the management team as a whole, rather than as a individual manager is appraised in this way. Employees may be for instance asked general questions such as, do you have opportunities for training.
Peer Appraisal
This involves employees on the same level within the organisation assessing each other within a particular department.
360 Degree Feedback
360 Degree Feedback or multi-source assessment involves feedback from a number of people within the organisation both above and below the appraisals.
Managers are giving 360 degree feedback to identify ways of appraising their leadership skills.
Performance Appraisal
" Performance appraisal time is that time of year when the appraisal does not sleep the night before, and the appraise does not sleep at night after the review.
Advantages
(1) Promotion / Improvement
(2) Rising Pay
(3) Better communication relationship with manager.
(4) Employee satisfaction of job
Disadvantages
(1) favouritism
(2) demotion
(3) might not get the satisfaction you wanted to require in that job.
(4) might lose your job
Career Disciplines
In total, there are ten Graduate Development programmes from which to choose. Ultimately, The Company’s objective is to create in everyone a senior manager of the future. The more you see, do and experience, the better placed you’ll be to determine the shape and nature of your career development.
Disciplines Academic Requirements Possible qualifications you can take with Boots
Marketing Any degree Chartered Institute of Marketing, MBA
Retail Manager # # Management Qualifications, MBA
Logistics # # Institute of Logistics, MBA
IS Consultancy # # IT Qualifications, MBA
Finance # # Chartered Institute of Management Accountants, MBA
Science # # Institute of Packaging, MBA
Engineering Mechanical. Electrical/ a related degree IMechE Membership, MBA
Personnel Any degree Institute of Personnel and Development, MBA
Task 4 Performance Management
A business needs to manage the performance of its employees effectively. Oganisation therefore, have developed systems and methods for managing effectively the performance of their employees.
-
identifying and describing essential job functions and relating them to the mission and goals of the organisation
- developing realistic and appropriate performance standards
- giving and receiving feedback about performance
- writing and communicating constructive performance appraisals
Performance review
In a organisation you want everyone to be pulling in the same direction,.. Effective organisation will therefore set out a mission statements identifying the overreaching aims of the origination
Given the mission and values, the organisation can create objectives at every level within the organisation right down to personal objectives for individual members of the organisation can be monitored and evaluated, as well as measuring the performance of individuals members of the organisation.
A well developed performance management systems will include the following
A statements outlining the organisation’s values.
A statements of the organisation objectives
Individual objectives, which are linked to the organisation objectives
Regular performance review throughout the year. Performance related pay
Training and counselling
With such a systems in place, it becomes possible to establish for a period of time the key result area that an individual will be judged against. The results the individual achieves can be judges against expected standards a rewards systems can then be tailored to the way in which the individuals enables the organisation to achieves its results
Performances appraisal
This is the process of evaluating performances systematically and of providing feedback on which performances adjustments can be made. Performance appraisal works on the basis of the following equation
Desired performances – Actual performances = Need for action
The major purpose of performance appraisal are to
Define the specific job criteria against which performances against which performances will be measured
Measure past job performances accurately
Justify the rewards given to individuals and groups
Define the experiences that an individuals employee until need for his of her ongoing developing. These developing experiences should improve job performances and prepare the employee for future responsibilities
Self evaluation
Self evaluation is an important part of performance management. Take for example a employee of Boots. The employee it is hoped takes the responsibility for his or her own learning. The employee’s needs to be able to identify the assessment criteria the start of a particular stage and get the highest grade.
Self evaluation is therefore very important in work context. Modern organisation encourage their employees to establish meaningful gal and then to evaluate performance in meeting these goals
Employees who are given work assignments to do are also often encouraged to evaluate their own performance in carrying out these assignments to the required standard. The benefits of using this approach are as follows
The employee takes more responsibility for their own work are and for monitoring their own performance in this are. This is clearly motivational
The employees may have a greater understanding of their own work area and their jobs than an external appraiser may have. This is increasing the case where employees are working in highly creative individual situation, developing interpersonal relation that are not always easy to scrutinise and measure.
Self evaluation is cost effective. It avoids the wasteful expense including time of having external evaluators.
Peer Evaluation
Peer groups evaluation, makes it possible to check on how much team members are contribution to the product of the teamwork and to the process of the teamwork.
Peer evaluation can be very effective in in that it creates a collaborative approach at work. They don’t feel they are being judged from above.
Motivation theories and ideas
Over the years number of motivation theories have been put forward that are of interest to us in outing the sorts of approach that can be used to motivate people in the work place. Motivation is the level of commitment individuals has to what they are doing. Workplace motivation is concerned with commitment to an organisation, its objectives and targets.
Much has been written about motivation and intelligent organisations seek to win the commitment of employee by paying attention to motivation factors in the workplace.
Performance management
Organisations have always relied on the performance of the human resources.
F.W.Taylor was associated within approach entitled scientific management. Scientific mangers assumed that people were alike and that their motivations were relatively simple.
They believed that their managers could program the workers actions. Scientific manager is associated with developing scientific methods of organisation work.
Taylor wanted to give control back to employers by developing science of work in which would be controlled by the scientific managers. He carried out a series of systematic studies of shop floor practices with the intention or redesigning jobs so that all knowledge expertise, and hence control of work, rested with management.
Jobs were broken down and fragmented to their most basic components in an extreme division of labour.
Prior to Maslow, researchers generally focused separately on such factors as biology, achievement, or power to explain what energizes, directs, and sustains human behaviour.
Maslow posited a hierarchy of human needs based on two groupings: deficiency needs and growth needs. Within the deficiency needs, each lower need must be met before moving to the next higher level. Once each of these needs has been satisfied, if at some future time a deficiency is detected, the individual will act to remove the deficiency. The first four levels are:
1) Physiological: hunger, thirst, bodily comforts, etc.;
2) Safety/security: out of danger;
3) Belongings and Love: affiliate with others, be accepted; and
4) Esteem: to achieve, be competent, gain approval and recognition
Douglas McGregor - Theory X and Y
McGregor's ideas (1960) about managerial behaviour had a profound effect on management thinking and practice.
His Theory Y principles featured in management training courses for a decade or more. They influenced the design and implementation of personnel policies and practices. The legacy today permeates the axioms of participate and total quality management and the continued practice of staff appraisal.
What did McGregor do?
He was President of Antioch from 1948 to 1954.
Two sets of propositions were dubbed Theory X and Y.
He was saying that - what managers said or exhibited in their behaviour revealed their theories-in-use. Their predisposition led managers to pursue particular kinds of policies and relationships with employees.
Somewhat regrettably, McGregor's Theory Y was interpreted and promoted as a "one-best-way" i.e. Y is the best !! Managers or aspects of their behaviour became labelled as Theory X, the bad stereotype and Theory Y - the good.
McGregor ideas were much informed by Maslow's need satisfaction model of motivation. Maslow's ideas suggested that worker disaffection with work was due - not to something intrinsic to workers, but due to poor job design, managerial behaviour and too few opportunities for job satisfaction.
On the basis of these ideas about drives - Maslow suggested a classification of needs related to the development of the person - lower level needs giving way developmentally to higher order needs. Thus a hierarchy is suggested although not claimed by Maslow.
Human Relations
Frederick Herzberg - 2 Factor Hygiene and Motivation Theory
Frederick Herzberg, contributed to human relations and motivation in terms of organisation development, two theories of motivation as follows:
Hygiene Theory
Motivation
The first part of the motivation theory involves the hygiene theory and includes the job environment. The hygiene factors include
the company
its policies and its administration,
the kind of supervision which people receive while on the job,
working conditions
interpersonal relations,
salary,
status,
security.
These factors do not lead to motivations but without them there is dissatisfaction.
The second part of the motivation theory involves what people actually do on the job. The motivators are
achievement,
recognition,
growth / advancement and
interest in the job.
These factors result from internal generators in employees, yielding motivation rather than movement.
Both these approaches (hygiene and motivation) must be done simultaneously. Treat people as best you can so they have a minimum of dissatisfaction. Use people so they get achievement, recognition for achievement, interest, and responsibility and they can grow and advance in their work.
Therefore, the hygiene and motivation factors can be listed as follows:
Hygiene
Company policies and administration
Supervision
Working conditions and interpersonal relations
Salary, status and security
Motivators
Achievement
Recognition for achievement
Interest in the task
Responsibility for enlarged task
Growth and advancement to higher level tasks
Task 5
Conflicts between Human Resources and other functions within Boots.
It is difficult to get any information from Boots that would inform the conflicts within the company relating to Human Resource Management. This is because their competitors could use the information against Boots. However, in any organisation conflicts are inevitable the main conflicts are as follows:
Departmental rivalry- when a company has to choose which department is better, such as training. The HRM has the difficulty of making a decision on who should benefit form those activities. Department managers will all want their staff to obtain the benefits of the activities. This is a potential are a for conflict.
Recruitment & Selection – If Boots were to recruit externally, when and internal candidate is available, there could be and area of conflict between the HRM and the candidates. If an Internal candidate is chosen, external candidates may feel that the HRM is biased. In an efficient HRM Department such disputes should be resolved quickly as they will only choose the most suitable candidate regardless of whether they are internal or external.
During appraisal – An appraisal should be conducted Once a year, but the events of a year cannot be remember by HRM during the time of appraisal, so it should be conducted every 3-4 months. Staff may have high opinions or expectation about their performance but the person conducting the appraisal may not agree. This could lead to disputes and disagreements.
Trade Union – The trade representative wants the best pay and worki8ng conditions for the employees, but the Human resource departments objective is to ‘get the most’ out of employees. The HR department has to ensure that salaries and wages are the minimum to attract the appropriate staff. When each side is attempting to gain the maximum potential consequently conflicts will arise.
